
The latest monthly data from the National Association of Realtors (released last Friday) show existing home sales rose 5.0 percent in December from November, and were 3.6 percent higher over the level in December 2010.
NAR’s chief economist, Lawrence Yun, said that these are early signs of what may be a sustained recovery. “Record low mortgage interest rates, job growth and bargain home prices are giving more consumers the confidence they need to enter the market,” Yun said.
The national rate for a 30-year conventional, fixed-rate mortgage was 3.96 percent in December, down from 4.71 percent a year earlier.
Some positive trends:
• Foreclosures sold for an average discount of 22 percent in December, up from 20 percent a year ago.
• Short sales closed 13 percent below market value, compared with a 16 percent discount in December 2010.
• Available inventory has decreased since it peaked in July 2007, and is at the lowest level since March 2005
In the Northeast, existing home sales jumped 10.7 percent in December, which is 3.3 percent above a year ago.
This is good news. The housing market is beginning to stabilize, and actually improve. There is a lot of “pent up demand” – people who have put off purchasing but are finally getting off the fence. More buyers coming into the market means additional benefits for the overall economy. When people buy homes, they stimulate of lot of related goods and services.
This is a great way to start the year!
Source: http://www.realtor.org
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